small government

Small government is a policy term which refers to a government which plays a small role in the economy, in contrast to big government where government programs and transfers make up a large part of the GDP. Those who would prefer less taxes and less government services can be said to be in favor of small government. The need for small government is often argued on questions of efficiency, and the argument that public sector tends to waste more money than the private sector. Since the progressive income tax and social programs together redistribute resources toward lower income households, big/small government tends to be tied to questions of social justice and inequality.

The Small Government Act to End the Income Tax was the boldest tax cut initiative in American history. On the 2002 Massachusetts ballot as "Question 1", it won an unprecedented 45% of the vote. If it had passed, it would have repealed all Massachusetts state taxes on personal income: wages, passive income (interest and dividends) and capital gains.

see also: starve the beast, inequality, tax revolt, tax freedom day